Infosys accuses Cognizant CEO Ravi Kumar of stalling a key project to make gains for rivals

Infosys, India’s second-largest IT services giant, has filed a counter-suit against rival Cognizant, accusing its CEO, Ravi Kumar S, of sabotaging the launch of its healthcare platform, Infosys Helix.

Filed on January 9 in the US Federal Court for the Northern District of Texas, the lawsuit alleges anticompetitive tactics, misuse of trade secrets, intentional delay, demand a jury trial, treble damages, and invalidation of restrictive covenants imposed by Cognizant.

Infosys alleges that Kumar, a former senior executive at the company, hindered the development of Helix by withholding resources during his tenure at Infosys while negotiating his move to Cognizant.

The lawsuit alleges that Kumar’s actions delayed the launch of Helix by 18 months, harming competition and inflating costs to health care payers. “Cognizant’s anticompetitive scheme to halt the launch of Infosys Helix included the targeted hiring of senior executives responsible for Infosys Helix,” the lawsuit states. Kumar, who joined Cognizant as CEO in January 2023, is said to have brought in two other key executives at Infosys, leading to escalating tensions. Between companies.

This countersuit comes on the heels of a lawsuit filed by Cognizant against Infosys in August 2022, accusing it of stealing trade secrets related to its TriZetto healthcare software. Infosys denies the allegations, arguing that Cognizant’s conduct stifled competition by limiting the options available to buyers of healthcare IT services.

In its defence, Cognizant said, “Cognizant is committed to upholding the highest standards of integrity…Competitors cannot use Cognizant’s intellectual property to compete unfairly, as Infosys did.” The ongoing legal battle highlights the intense rivalry between the two companies, which has seen the revenue gap narrow from $4.3 billion in 2019 to just $1 billion in 2023, fueled by leadership transitions and aggressive hiring.